1) A portfolio's risk is not equal to the weighted average of the individual stocks' standard deviations. True or False 2) The market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio. True or False 3) When returns on Stock A increase, returns on Stock B also increase. In general, this would mean that Stocks A and B are positively correlated. True or False 4) The risk in a portfolio will increase if more stocks that are negatively correlated with other stocks are added to the portfolio. True or Flase Focus